Also, CEO announced plans for better efficiency index than Brazil’s large banks
01/19/2023
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João Vitor Menin — Foto: Silvia Zamboni/Valor
Banco Inter wants to reach 60 million clients by 2027, CEO João Vitor Menin said on Wednesday during the company’s Investor Day. The bank outlined in the event a five-year plan with three goals, named 60-30-30. In addition to gaining new clients, Inter wants to increase the return on equity (ROE) and efficiency index to 30%. Mr. Menin believes that the goals are challenging but feasible.
In order to have 60 million clients in five years, compared with 25 million today, Inter would have to gain about 7 million per year, a little less than the 8 million per year it has gained in the last two years. The efficiency ratio – the lower, the better – would have to fall by more than 30 percentage points and would be better than the average of the large incumbents, which is around 35%.
The ROE of 30% would come with a profit of R$5 billion per year, with a loan portfolio of R$100 billion. In the third quarter, the portfolio totaled R$22 billion, there was a net loss of R$30 million (or adjusted profit of R$23 million), and ROE was negative 1.7%.
“By balancing investments in technology with growth and profitability, going far beyond banking services, Inter has become the first Super App in the Americas. We have built a set of offerings from our digital account that are unmatched in the market,” said Mr. Menin.
In his view, the bank is in its early stages of evolution, but the positive results show that it is time to take Inter to the next level. “We are confident that we have the right strategy, solutions, and team to execute our plan, pursue our goals and deliver sustainable growth.”
According to Mr. Menin, as Inter grows its customer base and improves monetization, he expects the efficiency rate to be higher than its peers over time, not least because, unlike incumbent banks, it does not have legacy systems and a branch network. “Our metrics and performance indicators will also continue to grow as we continue our expansion,” he said, adding that Inter brings together the best of both worlds, banking, and technology, creating a better customer experience that generates better returns for all stakeholders.
*By Álvaro Campos — São Paulo
Source: Valor International